Module 5

MAGNA CARTA FOR RESIDENTIAL ELECTRICITY

CONSUMERS

CHAPTER l. GENERAL PROVISIONS

Article 1, Tide — This Resolution shall be known as the Magna Carta for Residential
Electricity Consumers.

Article 2. Definition of Terms. —

(a). Bill Deposit shall mean the deposit required from customers by distribution utilities of
new and/or additional service equivalent to the estimated billing for one month to
guarantee payment of bills.

(b). Billing Ad]ustment shall mean the amount charged to the consumer for the unbilled
electricity consumed resulting from a stoppage or defect, conspicuous or otherwise. in
the meter, provided that there is no evidence of tampering thereon;

(c ) Connection Point shall mean the point of connection of the user system or equipment
to the distribution system (for users of the distribution system) or to the grid (for users of
the grid);

(d). Consumer or Customer or End-user shall mean any person who is the registered
customer of the electric utility being supplied with electricity by the concerned distribution
utility or any person authorized by the registered customer to occupy the premises and
enjoy electric service;

(e). Distribution shall mean any electric cooperative, private corporation, government-
owned utility or existing local government unit which has an exclusive franchise oi is
authorized by law to distribute electricity to end-users;

(f). Differential Billing shall mean the amount charged to the consumer for the unbilled
electricity illegally consumed as determined through the use of methodologies
prescribed by raw. It is determined by multiplying the unbilled consumption in kWh, the
period covered and the current rate of electricity at the time of apprehension;
(g). Energy Regulatory Commission or Commission or ERC shall mean the
independent regulatory agency created under Republic Act No. 9136. otherwise known
as the Electric Power 'industry Reform Act of 2001 (EPIRA);
(h). Month shall mean the elapsed time between two succeeding meter readings. at
least twenty-eight (28) days apart but not to exceed thirty one (31) days.

(i). An Officer of the Law shall refer to any person who, by direct provision of law or by
election or by appointment by competent authority, is charged with the maintenance of
public order and the protection and security of life and property. such as barangay
captain/chairman. barangay councilman, barangay leader, officer or member of
Barangay Community Brigades, barangay policeman, PNP policeman, municipal
councilor. municipal mayor and provincial fiscal.

(j). A Registered Customer shall mean the customer who has a valid service contract
with the electric distribution utility.

(k). Residential consumer shall mean a customer classified as such in the distribution
utility's rate schedule as approved by the ERC.
Article 3. Applicability . — This Magna Carta shall only apply to residential
consumers.

Article 4. Basic Rights. All consumers shall be entitled to the following basic rights:

(a) To have quality. reliable. affordable, safe, and regular supply of electric
power;

(b) To be accorded courteous, prompt and non-discriminatory service by the

electric service provider;

(c) To be given a transparent, non-discriminatory and reasonable price of

electricity consistent with the provisions of RA 9136;

(d) To be an informed electric consumer and given adequate access to

information on matters affecting the electric service of the consumer
concerned;

To be accorded prompt and speedy resolution of complaints by both the

distribution utility and/or the ERC;

To know and choose the electric service retailer upon the implementation of
Retail Competition; and Consumers
(g). To organize themselves as a consumer organization in the franchise area
where they belong and where they are served by the distribution utility or as a
network of organizations.
 Article 5. Basic Obligations. - Every consumer must comply with the following
obligations and responsibilities:

(a) To observe the terms of his contract including, among other things, paying
monthly electricity bills promptly and honestly;

{b) To allow the faithful and aca.lrate recording of consumptk)n to be reflected

in the appropriate device:

(c) To allow the utility's employees/representatives entry/access to his

premises for the purposes provided tor in Article 29 hereof;

(d) To take proper care of metering or other equipment that the electric utility
hes installed in his premises;

To inform the distribution utility and/or proper authorities of any theft or

pilferage of electricity or any damage caused by any person to the
electric meter and equipment appurtenant thereto; end

(e) To cooperate with and support programs on the wise and efficient
use of electricity.

Article 6. Right to Electric Service. - A consumer has the right to be connected to a

distribution utility for electric power service after the consumers full compliance with
the distribution utility’s and local government unit's (I-GU) requirements.

Article 7. Right to a Refund of Bill Deposits. — The bill deposit provided for under
Article 28 hereof shall be refunded within one month from the termination of service
provided all bills have been paid.

Article 8. Exemption from Payment of Meter Deposits. — All consumers shall be

exempt from payment of meter deposits since private distribution utilities have
incorporated the cost of these electric watthour meters in their rate base. Electric
cooperatives shall use their respective Reinvestment Funds to procure electric watthour
meters for their consumers.
Article 9. Right to an Accurate Electric Watthour Meter; Determination of Average
Error. No meter, including instrument transformers, shall be installed or placed in service
unless it has been tested, certified and sealed by the ERC. All watt-hour meters
regardless of make and type before being placed in service must be adjusted to as close
as possible to the condition of zero error.
Article 10. Right to a Refund of Overbillings. — The customer has the right to a refund
in cases of overbilling by the distribution utility arising from a meter testing showing that
the said meter was fast without any evidence of tampering

CHAPTER ll. CONSUMER RIGHTS

Article 6. Right to Electric Service

A consumer has the right to be connected to a distribution utility for electric power
service after the consumer’s full compliance with the requirements.

Article 7. Right to a Refund of Bill Deposits.

The bill deposit shall be refunded within one (1) month from the termination of
service provided all bills have been paid.

Article 8. Exemption from Payment of Meter Deposits

All consumers shall be exempt from payment of meter deposits since private
distribution utilities have incorporated the cost of these electric watt-hour meters in
their rate base. Electric cooperative shall use their respective Reinvestment Funds
to procure electric watt-hour meters for their consumers.

Article 9 Right to an Accurate Electric Watthour Meters; Determination of Average

Error.

No meter, including instrument transformers, shall be installed or placed in service

unless it has been tested, certified and sealed by ERC.

All watt-hour meters regardless of make and type before being placed in service
must be adjusted to as close as possible to the condition of zero error.

Article 10 Right to a Refund of Overbillings.

The customer has the right to a refund in cases of over-billing by the distribution
utility arising from a meter testing showing that the said meter was fast without any
evidence of tampering.
Article 11. Right to a Properly Installed Meter

The customer has the right to a meter installed in a clean place free of vibration
and where it will be easily accessible and visible for reading and testing by both
the distribution utility and consumer.

Article 12. Right to a Meter Testing by Electric Utility and/or ERC

A customer has the right to require the distribution utility to test, once every two (2)
years, free of charge, the accuracy of the meter installed in his premised making
use of a meter standard duly tested and sealed by the ERC.

Article 13. Right to a Prompt Investigation of Complaints; Customer Dealings

Distribution utilities shall record and promptly investigate all complaints referred
to them concerning their services.

In dealing with their customers relative to electric power services, all officers,
employees and agents of distribution utilities must properly and conspicuously
display their identification cards at all times.

Article 14. Right to Extension of Lines and Facilities

A consumer located within thirty (30) meters from the distribution utilities’ existing
secondary low voltage lines, has the right to an extension of lines or installation of
additional facilities…

Article 15. Right to Information; Scheduled Power Interruptions

In order to increase consumer awareness, all offices of DU’s must provide

a Consumer Bulletin Board where major announcements/documents issued
affecting consumers will be posted.

Furthermore, they must establish communication facilities, including but not limited
to a customer hotline and Short Messaging Service (SMS), to cater exclusively
their customers.

At least two (2) days before a scheduled power interruption, a DU must announce
the same to its customers through print, or other mass or interactive media.
Article 16. Right to a Transparent Billing

Bills to service customers shall conform with the format as approved by ERC.

Article 17. Right to a Monthly Electricity Bill

Bills shall be delivered monthly to the customers by the DU in accordance with

the applicable rate schedule.

Article 18. Right to Due Process to Disconnection of Electric Service

No consumer shall be deprived of electric service without due process of law.

Disconnection of electric service shall only be made under the following

circumstances:

1. Non-payment of electric bills within the period of time provided in Article

32 of this Magna Carta.
2. Illegal use of electricity under RA 7832, otherwise known as the Anti-
Electricity Pilferage Law.
3. Upon lawful orders of government agencies and/or the courts.
4. When the public safety so requires
5. Request of the registered customers based on justifiable reasons
6. Allowing other end-users or persons to be connected to his electrical
installation, whether for profit or not.

Article 19. Right to a Notice Prior to Disconnection

For disconnections due to non-payment of electric bills, a written notice must have
been served to the customer forty eight (48) hours before such disconnection.

Article 20. Right to Suspension of Disconnection

Disconnections of service shall not be made on any week day beyond three
o’clock (3:00 PM) in the afternoon, Saturdays, Sundays and official holidays,
and under the following or any other similar circumstances:

• One of the permanent occupants is sick and dependent on a life support

system requiring electricity. Provided, that the customer can present a
medical certificate … (not to exceed 2 months)
• During the funeral wake of a deceased permanent resident of the
premises. Provided, that the consumer can present a duly certified true
copy of death certificate … (Not to exceed 1 month)
 • Customer indubitably probes he did not receive a Statement of Account
and/or Disconnection Notice …
• Customer is being billed in a single statement for consumption
covering several months due to the failure of the utility to issue timely
monthly billing statement to the consumer;
• Filing of complainant with ERC for cases involving differential billings,
billing adjustments arising from defective or stop meters or other billing
errors, and estimated consumptions until the complainant’s final
resolution
• Filing of complaint with ERC for high billing upon posting a
bond equivalent to the complainant’s average 12-month consumption
prior to the billing in question.

Article 21. Right to Tender Payment at the Point of Disconnection; Deposit

Representing the Differential Billing

If at the time the disconnection is to be made, the customer tenders payment of

the unpaid bill to the agent or employee of the DU who is to effect the
disconnection, the said agent, or employee of the DU shall desist from
disconnecting the service to allow the customer to pay his bills within twenty-four
(24) hours. Provided however, that the customer can only invoke this provision
once for the same unpaid bill.

Article 22. Right to Electric Service Despite Arrearages of Previous Tenant

A DU shall not refuse or discontinue service to an applicant or customer, who is

not in arrears to the DU, even though there are unpaid bills or charges due from the
premises occupied by the applicant, or customer, on account of an unpaid bill of a
prior tenant, unless there is evidence of conspiracy to defraud DU.

Article 23. Right to Reconnection of Electric Service.

Whenever the electric service is disconnected due to non-payment of electric bills,

the DU must immediately reconnect the same within the period , but in no case
shall exceed twenty four (24) hours from payment of the said arrearages by the
customer.

Article 24. Right to Witness Apprehension

All apprehensions for illegal use of electricity must be personally witnessed by the
customer or occupant or someone of suitable age and discretion residing therein
and acting in behalf of the owner or occupant of the premises, and by an officer of
the law or by an ERC representative.
Article 25. Right to ERC Testing of Apprehended Meter

In case the apprehension is witnessed by an officer of the law and not by an ERC
authorized representative, the electric meter subject of the offense must
be placed in suitable container, properly identified and sealed, and shall
be opened only for testing by the ERC’s duly authorized representative.

Article 26. Right to Payment Under Protest

In cases of regular electric bills or billing adjustments due to the stoppage or failure
of the meter or differential billing due to alleged illegal use of electricity the
consumer shall have the right to pay under protest for purposes of continuous
supply of electricity by the utility.

Article 27. Right to File Complaints before ERC

Every consumer has the right to file a complaint before the ERC.

Provided, that the complainant has previously discussed/consulted the issue with
the Consumer Welfare Desk (CWD) Officer or Representative of the concerned DU
and no settlement has been reached.

CHAPTER Ill. CONSUMER OBLIGATIONS

Article 28. Obligation to Pay Bill Deposit. A bill deposit from all residential customers
to guarantee payment of bills shall be required of new and/or additional service.
Article 29. Obligation to Allow Inspection, Installation & Removal of Electricity
Apparatus - Customers shall allow the employees and/or representatives of the
distribution utility to enter their premises for the purpose of inspecting, . installing,
reading, testing. repairing, maintaining, removing, replacing, of otherwise disposing of
its apparatus and property. and/or removing the distribution utility's entire property in the
event of the termination of the electricity service contract; and for disconnection of
service for nonpayment of bills or violation of contract (VOC).
Article 30. Obligation to Allow the Construction of Poles, Lines & Circuit. -
Consumers shall allow the distribution utility, if necessary, to construct its poles. lines
and circuits and to place its transformers, apparatus on their property or within the
buildings of the consumer, at a point or points convenient for such purpose,
Article 31. Obligation to Receive Monthly Bills — Consumers must accept their
electric bills, without prejudice to the exercise of their right to pay under protest pursuant
to Article 26 of this Magna Carta in order to contest the same.
 Article 32. Obligation to Pay Monthly Electric Bills. - Consumers must pay their bills
not later than nine (9) days after receipt of the monthly bill.

Article 33. Obligation to Pay Billing Adjustments. - A consumer may be compelled

to pay a billing adjustment in case there is a stoppage or failure by the customer's meter
to register the full amount of energy consumed without any fault on the part of the
customer.
Article 34. Obligation not to Commit illegal use of Electricity. - No consumer is
allowed to perform acts constituting illegal use of electricity. The following circumstances
constitute prima facie evidence of illegal use of electricity:

Article 35. Obligation to Pay Differential Billing. — A consumer who is discovered to

have committed the offense of illegal use of electricity shall, in addition to the imposition
of appropriate penal sanction, be required to pay a differential billing to the electric
distribution utility to be computed in accordance with existing taws. rules and regulations.

CHAPTER IV. FINAL PROVISIONS

Article 36. Implementation, — Implementation of Articles 7. 8 and 28 shall be subject

to Guidelines to be promulgated and approved by the
Article 37. Violation. — A violation of any provision of this Magna Carta shall be subject
to penalty which the Commission. after giving the electric utility or consumer the
opportunity to be heard. may impose in accordance with law.

Article 38. Separability Clause. — If any provision of this Code is declared

unconstitutional' or invalid. the other provisions not affected thereby shall remain in force
and effect.
Article 39. Repealing Clause. — Provisions of ERB Res. No. 95-21 as amended, rules,
regulations. guidelines and other issuances not expressly revised by this Magna Carta
shall remain force and effect.

Article 40. Effectivity. — This Code shall take effect fifteen (15) days after its
publication in a newspaper of general circulation in the country

References :
h https://www.doe.gov.ph/sites/default/files/pdf/downloads/magna_carta.pdf
ttps://www.doe.gov.ph/consumer-connect/consumer-rights-obligations

https://electricalengineerresources.com/2019/10/07/22-consumer-rights-magna-carta-
for-residential-electricity-consumers-as-amended/